By JIMMY VIELKIND Capitol bureau

Published 1:00 am, Wednesday, July 28, 2010

ALBANY -- Legislators return to the Capitol today for an extraordinary session, but New Yorkers should expect more closed-door negotiations than actual action when their representatives take to the floor this evening.

Legislative leaders on Tuesday said negotiations are continuing over two pieces of legislation -- a contingency plan for the possible loss of federal Medicaid funds and a bill granting SUNY and CUNY campuses more flexibility to raise tuition and enter into public-private partnerships. Both measures are seen as prerequisites for senators to finalize the budget, which is 119 days late.

Senate Democratic Conference Leader John Sampson said the session was "about resolving the outstanding issues." In Manhattan, Assembly Speaker Sheldon Silver said "the issue is how we help the Senate get to pass a budget."

Neither leader indicated much interest in the agenda offered by Gov. David Paterson, who has the power to call lawmakers to the Capitol but can't force them to act on any bills.

If a deal on the "outstanding issues" was reached, it would allow the 32 Democratic senators to pass the revenue bill -- the last piece of the budget -- and allow lawmakers in both houses to get paid.

The wrinkle: Senate President Malcolm Smith, D-Queens, is on vacation and is not expected to be at session tonight, according to sources in the chamber. His absence would require a Republican vote to pass any measure.

In another move not boding well for action, Sampson has told his fellow Democrats to be prepared for a trip to Albany next week.

The Senate delivered a two-page draft proposal on the remaining issues to the governor's staff late Tuesday night. Paterson spokesman Morgan Hook said it was being reviewed, but no agreement has yet been reached.

"The governor's hope is that the Senate comes in and finishes the budget, and that the Legislature takes up his agenda," Hook said.

Paterson's agenda for tonight's session included his version of plans for SUNY/CUNY flexibility and a Medicaid contingency plan, as well as a bill to cap property taxes, a tax on sugary beverages and legislation allowing the sale of wine in grocery stores.

In a teleconference with reporters, Sampson was asked to explain the point of the session if an agreement remains elusive.

"There is always a point. ... Negotiations are going on, and negotiations can be resolved at a moment's notice," Sampson said.